iPadThin moat

Apple (AAPL) — moat facet

The only Apple line smaller than it was in 2013: a second screen that its owners rarely replace.

The iPad is the only Apple line that is smaller today than it was a dozen years ago. It sold $28.0 billion in fiscal 2025, 6.7% of the company1, against $32.0 billion in fiscal 2013, when it was 18.7% of Apple23, and it was the one line that shrank in the June 2026 quarter4.

iPad net sales by quarter ($B)7.0Q1'245.6Q27.2Q37.0Q48.1Q1'256.4Q26.6Q37.0Q48.6Q1'266.9Q26.2Q3Apple 10-Qs; Q4 = fiscal year (10-K) less nine months
Three years of quarters between $5.6 and $8.6 billion: the iPad moves with product launches, not with a trend.

Inside it are four families of tablet running iPadOS: the iPad Pro, the iPad Air, the entry-level iPad and the iPad mini5; in the March quarter Apple moved the iPad Air to its M4 chip6, five months after the iPad Pro moved to the M57. The same chips that power the Mac now run the tablet, which is why the two lines increasingly compete for the same second-device purchase. Apple introduced the iPad in January 20108, and early growth was extraordinary: by fiscal 2013 Apple was selling 71.0 million a year9. Then the market saturated: iPad sales fell 5% in fiscal 2014 and 23% in fiscal 201510, and the fiscal 2016 decline came from lower unit sales and weak foreign currencies11. In fiscal 2017 both units and average prices fell, and in fiscal 2018 the mix shifted further toward cheaper models12. Units fell every year from fiscal 2013 until Apple stopped reporting them, to 43.5 million in fiscal 2018, and the filings put the fall in average price down to a mix of cheaper iPads13: revenue per iPad slipped from about $450 in fiscal 2013 to about $432 in fiscal 201814.

Each iPad is a single sale, and more than any other Apple product it is bought as a second or third screen, for a household, a school or a business. That makes it discretionary and slow to replace. Apple said on its June-quarter call that more than half of the quarter's iPad buyers were new to the product15, which is good for the ecosystem and a reminder that existing owners do not upgrade often.

There is no separate margin for the iPad. It sits inside the 36.8% products gross margin for fiscal 202516, and nothing in the filings separates it; with average prices falling for years, there is no basis for assuming it earns more than the products average.

The growth record is lumpy and mostly flat. Revenue was $23.2 billion in fiscal 2015 and fell for three years, then rose on the recast basis to $21.3 billion in fiscal 2019, $23.7 billion in fiscal 2020 and a peak of $31.9 billion in fiscal 2021, on higher sales of the iPad Air and iPad Pro17. It fell 8% in fiscal 2022 on lower sales of the iPad Pro18, 3% in fiscal 2023 on the iPad mini and Air19 and 6% in fiscal 2024, then rose 5% in fiscal 2025, on the iPad Air, the iPad mini and the entry iPad, while the iPad Pro fell again20. From fiscal 2019 to fiscal 2025 it compounded at about 4.7% a year21, and the weak years mostly name the higher-priced models. Across the whole decade on the chart, fiscal 2015 to fiscal 2025, the iPad added $4.8 billion of annual sales while Services added $89.3 billion22.

The last two quarters show the same pattern in miniature. Sales rose 8% in the March quarter to $6.9 billion on higher sales of the entry-level iPad, then fell 6% in June to $6.2 billion on lower sales of the iPad mini and iPad Air2324, leaving the first nine months up 3% after a December quarter that grew 6% on the entry-level iPad and the iPad Pro25; Apple called June a difficult comparison26. In June Apple also raised iPad prices because of the memory shortage27, which lifts revenue per unit but tests demand for the entry model that drove the recent growth.

The iPad matters to Apple more than its revenue suggests: it is a common second Apple device and a way into schools, and those arguments belong to Multi-Device Households. As a line, the verdict rests on fiscal 2026 revenue against fiscal 2025's $28.0 billion. Growth despite the price rises would mean the iPad has found a stable place; another fall would confirm it as the part of Apple that peaked in the year its first owners bought it.

Moat trajectory: Narrowing

The line is smaller than in fiscal 2013, fell 6% in the June 2026 quarter, and has just had its prices raised for memory costs; growth now depends on the entry model.

The number that tests this moat
Reported
iPad net sales, first nine months of FY2026
$21,700M, +3% year on year

The iPad grew 3% in nine months and fell 6% in the June quarter. A full fiscal 2026 below fiscal 2025's $28.0 billion after the summer price rise would confirm the line is shrinking.

Source: Apple Form 10-Q, Q3 FY2026 ↗
References
  1. ReportedIt sold $28.0 billion in fiscal 2025, 6.7% of the company, against $32.0 billion in fiscal 2013, when it was 18.7% of Apple, and it was the one line that shrank in the June 2026 quarter.
    Apple Form 10-K, FY2025, Item 7 - net sales by category 2023-2025 (iPhone $209,586M / $201,183M / $200,583M; Mac $33,708M / $29,984M / $29,357M; iPad $28,023M / $26,694M / $28,300M; Wearables, Home and Accessories $35,686M / $37,005M / $39,845M; Services $109,158M / $96,169M / $85,200M) and the drivers of each change; products and services gross margin 36.8% and 75.4%; services cost of sales $26,844M — FY2023-FY2025 · publ. 31 October 2025 · source ↗
  2. ReportedIt sold $28.0 billion in fiscal 2025, 6.7% of the company, against $32.0 billion in fiscal 2013, when it was 18.7% of Apple, and it was the one line that shrank in the June 2026 quarter.
    Apple Form 10-K, FY2015 - net sales and unit sales by product FY2013-FY2015 (iPhone $155,041M; iPad $23,227M on 54,856K units, and $31,980M on 71,033K in 2013; Mac $25,471M, $21,483M on 16,341K in 2013; Services $19,909M; Other Products $10,067M) — FY2013-FY2015 · publ. 28 October 2015 · source ↗
  3. Moat Explorer calcIt sold $28.0 billion in fiscal 2025, 6.7% of the company, against $32.0 billion in fiscal 2013, when it was 18.7% of Apple, and it was the one line that shrank in the June 2026 quarter.
    Moat Explorer calc from Apple Forms 10-K (FY2015-FY2025) and 10-Q (FY2026): category net sales, units to FY2018, products and services gross margin, installed base reported each January — FY2013 to June 2026 · publ. 2026-09-19 · source ↗
    Method: iPad $31,980M / net sales $170,910M = 18.7% (FY2013, in the FY2015 10-K).
  4. ReportedIt sold $28.0 billion in fiscal 2025, 6.7% of the company, against $32.0 billion in fiscal 2013, when it was 18.7% of Apple, and it was the one line that shrank in the June 2026 quarter.
    Apple Form 10-Q, quarter ended 27 June 2026 - iPhone $54,252M (+22%); Mac $10,352M (+29%); iPad $6,191M (-6%) on iPad mini and Air; Wearables $7,883M (+6%); Services $30,739M (+12%) on advertising and cloud services; nine months: iPhone $196,515M, Mac $27,137M, iPad $21,700M, Wearables $27,277M, Services $91,728M; services gross margin 75.6%; deferred revenue $14.9B, 64% within a year — Q3 FY2026 · publ. 31 July 2026 · source ↗
  5. ReportedInside it are four families of tablet running iPadOS: the iPad Pro, the iPad Air, the entry-level iPad and the iPad mini; in the March quarter Apple moved the iPad Air to its M4 chip, five months after the iPad Pro moved to the M5.
    Apple Form 10-K, FY2025, Item 1 - the iPhone, Mac, iPad and Wearables, Home and Accessories lines (wearables include smartwatches, wireless headphones and spatial computers); Services: advertising incl. third-party licensing arrangements, AppleCare, cloud services, digital content incl. the App Store and subscription services, payment services; reportable segments are geographic; direct and indirect channels 40% and 60% of net sales — FY2025 · publ. 31 October 2025 · source ↗
  6. ReportedInside it are four families of tablet running iPadOS: the iPad Pro, the iPad Air, the entry-level iPad and the iPad mini; in the March quarter Apple moved the iPad Air to its M4 chip, five months after the iPad Pro moved to the M5.
    Apple Q2 FY2026 results release (8-K, exhibit 99.1) - the iPhone 17e, the M4-powered iPad Air and the launch of MacBook Neo — Q2 FY2026 · publ. 30 April 2026 · source ↗
  7. ReportedInside it are four families of tablet running iPadOS: the iPad Pro, the iPad Air, the entry-level iPad and the iPad mini; in the March quarter Apple moved the iPad Air to its M4 chip, five months after the iPad Pro moved to the M5.
    Apple Q4 FY2025 results release (8-K, exhibit 99.1) - the recently announced MacBook Pro and iPad Pro with the M5 chip — Q4 FY2025 · publ. 30 October 2025 · source ↗
  8. ReportedApple introduced the iPad in January 2010, and early growth was extraordinary: by fiscal 2013 Apple was selling 71.0 million a year.
    Apple press release, 'Apple Launches iPad' (27 January 2010) — January 2010 · publ. 27 January 2010 · source ↗
  9. ReportedApple introduced the iPad in January 2010, and early growth was extraordinary: by fiscal 2013 Apple was selling 71.0 million a year.
    Apple Form 10-K, FY2015 - net sales and unit sales by product FY2013-FY2015 (iPhone $155,041M; iPad $23,227M on 54,856K units, and $31,980M on 71,033K in 2013; Mac $25,471M, $21,483M on 16,341K in 2013; Services $19,909M; Other Products $10,067M) — FY2013-FY2015 · publ. 28 October 2015 · source ↗
  10. ReportedThen the market saturated: iPad sales fell 5% in fiscal 2014 and 23% in fiscal 2015, and the fiscal 2016 decline came from lower unit sales and weak foreign currencies.
    Apple Form 10-K, FY2015 - net sales and unit sales by product FY2013-FY2015 (iPhone $155,041M; iPad $23,227M on 54,856K units, and $31,980M on 71,033K in 2013; Mac $25,471M, $21,483M on 16,341K in 2013; Services $19,909M; Other Products $10,067M) — FY2013-FY2015 · publ. 28 October 2015 · source ↗
  11. ReportedThen the market saturated: iPad sales fell 5% in fiscal 2014 and 23% in fiscal 2015, and the fiscal 2016 decline came from lower unit sales and weak foreign currencies.
    Apple Form 10-K, FY2016 - iPhone net sales and unit sales decreased on a lower rate of iPhone upgrades; iPad decreased on lower unit sales and weaker foreign currencies — FY2016 · publ. 26 October 2016 · source ↗
  12. ReportedIn fiscal 2017 both units and average prices fell, and in fiscal 2018 the mix shifted further toward cheaper models.
    Apple Form 10-K, FY2018 - net sales and unit sales by product FY2016-FY2018 as originally reported (iPhone $166,699M on 217,722K units; iPad $18,805M on 43,535K; Mac $25,484M on 18,209K; Other Products $17,417M); iPad ASPs lower on a different mix of iPads — FY2016-FY2018 · publ. 5 November 2018 · source ↗
  13. ReportedUnits fell every year from fiscal 2013 until Apple stopped reporting them, to 43.5 million in fiscal 2018, and the filings put the fall in average price down to a mix of cheaper iPads: revenue per iPad slipped from about $450 in fiscal 2013 to about $432 in fiscal 2018.
    Apple Form 10-K, FY2018 - net sales and unit sales by product FY2016-FY2018 as originally reported (iPhone $166,699M on 217,722K units; iPad $18,805M on 43,535K; Mac $25,484M on 18,209K; Other Products $17,417M); iPad ASPs lower on a different mix of iPads — FY2016-FY2018 · publ. 5 November 2018 · source ↗
  14. Moat Explorer calcUnits fell every year from fiscal 2013 until Apple stopped reporting them, to 43.5 million in fiscal 2018, and the filings put the fall in average price down to a mix of cheaper iPads: revenue per iPad slipped from about $450 in fiscal 2013 to about $432 in fiscal 2018.
    Moat Explorer calc from Apple Forms 10-K (FY2015-FY2025) and 10-Q (FY2026): category net sales, units to FY2018, products and services gross margin, installed base reported each January — FY2013 to June 2026 · publ. 2026-09-19 · source ↗
    Method: iPad net sales / units: $31,980M / 71,033K = $450 (FY2013); $18,805M / 43,535K = $432 (FY2018).
  15. ReportedApple said on its June-quarter call that more than half of the quarter's iPad buyers were new to the product, which is good for the ecosystem and a reminder that existing owners do not upgrade often.
    MacRumors live coverage of Apple's Q3 FY2026 call (30 July 2026) — installed base above 2.5 billion; product margin 40.1% with a 2.5-point tariff-refund impact; September-quarter guidance: revenue growth of 9-11%, gross margin 47-48% with about 1% benefit from tariff refunds; Apple introduced a neural engine in 2017 — Q3 FY2026 call · publ. 30 July 2026 · source ↗
  16. ReportedIt sits inside the 36.8% products gross margin for fiscal 2025, and nothing in the filings separates it; with average prices falling for years, there is no basis for assuming it earns more than the products average.
    Apple Form 10-K, FY2025, Item 7 - net sales by category 2023-2025 (iPhone $209,586M / $201,183M / $200,583M; Mac $33,708M / $29,984M / $29,357M; iPad $28,023M / $26,694M / $28,300M; Wearables, Home and Accessories $35,686M / $37,005M / $39,845M; Services $109,158M / $96,169M / $85,200M) and the drivers of each change; products and services gross margin 36.8% and 75.4%; services cost of sales $26,844M — FY2023-FY2025 · publ. 31 October 2025 · source ↗
  17. ReportedRevenue was $23.2 billion in fiscal 2015 and fell for three years, then rose on the recast basis to $21.3 billion in fiscal 2019, $23.7 billion in fiscal 2020 and a peak of $31.9 billion in fiscal 2021, on higher sales of the iPad Air and iPad Pro.
    Apple Form 10-K, FY2021 - net sales by category FY2019-FY2021 (iPhone +39% on new models launched in the first and fourth quarters; Mac +23%; iPad $31,862M, +34% on iPad Air and iPad Pro; Wearables +25%; Services +27%); services gross margin 69.7% — FY2019-FY2021 · publ. 29 October 2021 · source ↗
  18. ReportedIt fell 8% in fiscal 2022 on lower sales of the iPad Pro, 3% in fiscal 2023 on the iPad mini and Air and 6% in fiscal 2024, then rose 5% in fiscal 2025, on the iPad Air, the iPad mini and the entry iPad, while the iPad Pro fell again.
    Apple Form 10-K, FY2022 - net sales by category FY2020-FY2022 (Mac $40,177M; Wearables, Home and Accessories $41,241M in 2022; iPad -8% on the iPad Pro) — FY2020-FY2022 · publ. 28 October 2022 · source ↗
  19. ReportedIt fell 8% in fiscal 2022 on lower sales of the iPad Pro, 3% in fiscal 2023 on the iPad mini and Air and 6% in fiscal 2024, then rose 5% in fiscal 2025, on the iPad Air, the iPad mini and the entry iPad, while the iPad Pro fell again.
    Apple Form 10-K, FY2023 - iPhone -2% ($4.9B) on non-Pro models; Mac -27% ($10.8B) on laptops; iPad -3% on iPad mini and Air; Wearables, Home and Accessories -3% ($1.4B); Services +9% ($7.1B) across all lines of business — FY2023 · publ. 3 November 2023 · source ↗
  20. ReportedIt fell 8% in fiscal 2022 on lower sales of the iPad Pro, 3% in fiscal 2023 on the iPad mini and Air and 6% in fiscal 2024, then rose 5% in fiscal 2025, on the iPad Air, the iPad mini and the entry iPad, while the iPad Pro fell again.
    Apple Form 10-K, FY2025, Item 7 - net sales by category 2023-2025 (iPhone $209,586M / $201,183M / $200,583M; Mac $33,708M / $29,984M / $29,357M; iPad $28,023M / $26,694M / $28,300M; Wearables, Home and Accessories $35,686M / $37,005M / $39,845M; Services $109,158M / $96,169M / $85,200M) and the drivers of each change; products and services gross margin 36.8% and 75.4%; services cost of sales $26,844M — FY2023-FY2025 · publ. 31 October 2025 · source ↗
  21. Moat Explorer calcFrom fiscal 2019 to fiscal 2025 it compounded at about 4.7% a year, and the weak years mostly name the higher-priced models.
    Moat Explorer calc from Apple Forms 10-K (FY2015-FY2025) and 10-Q (FY2026): category net sales, units to FY2018, products and services gross margin, installed base reported each January — FY2013 to June 2026 · publ. 2026-09-19 · source ↗
    Method: iPad $21,280M (FY2019) to $28,023M (FY2025) = 4.7% a year compounded; FY2025 share $28,023M / $416,161M = 6.7%.
  22. Moat Explorer calcAcross the whole decade on the chart, fiscal 2015 to fiscal 2025, the iPad added $4.8 billion of annual sales while Services added $89.3 billion.
    Moat Explorer calc from Apple Forms 10-K (FY2015-FY2025) and 10-Q (FY2026): category net sales, units to FY2018, products and services gross margin, installed base reported each January — FY2013 to June 2026 · publ. 2026-09-19 · source ↗
    Method: iPad $28,023M (FY2025) - $23,227M (FY2015) = $4,796M; Services $109,158M - $19,909M = $89,249M.
  23. ReportedSales rose 8% in the March quarter to $6.9 billion on higher sales of the entry-level iPad, then fell 6% in June to $6.2 billion on lower sales of the iPad mini and iPad Air, leaving the first nine months up 3% after a December quarter that grew 6% on the entry-level iPad and the iPad Pro; Apple called June a difficult comparison.
    Apple Form 10-Q, quarter ended 28 March 2026 - iPhone $56,994M (from $46,841M) on Pro models; Mac $8,399M on laptops; iPad $6,914M on the iPad; Wearables $7,901M (from $7,522M); Services $30,976M (from $26,645M) — Q2 FY2026 · publ. 1 May 2026 · source ↗
  24. ReportedSales rose 8% in the March quarter to $6.9 billion on higher sales of the entry-level iPad, then fell 6% in June to $6.2 billion on lower sales of the iPad mini and iPad Air, leaving the first nine months up 3% after a December quarter that grew 6% on the entry-level iPad and the iPad Pro; Apple called June a difficult comparison.
    Apple Form 10-Q, quarter ended 27 June 2026 - iPhone $54,252M (+22%); Mac $10,352M (+29%); iPad $6,191M (-6%) on iPad mini and Air; Wearables $7,883M (+6%); Services $30,739M (+12%) on advertising and cloud services; nine months: iPhone $196,515M, Mac $27,137M, iPad $21,700M, Wearables $27,277M, Services $91,728M; services gross margin 75.6%; deferred revenue $14.9B, 64% within a year — Q3 FY2026 · publ. 31 July 2026 · source ↗
  25. ReportedSales rose 8% in the March quarter to $6.9 billion on higher sales of the entry-level iPad, then fell 6% in June to $6.2 billion on lower sales of the iPad mini and iPad Air, leaving the first nine months up 3% after a December quarter that grew 6% on the entry-level iPad and the iPad Pro; Apple called June a difficult comparison.
    Apple Form 10-Q, quarter ended 27 December 2025 - iPhone $85,269M; Mac $8,386M (from $8,987M) on lower laptop and desktop sales; iPad $8,595M on iPad and iPad Pro; Wearables $11,493M (from $11,747M); Services $30,013M — Q1 FY2026 · publ. 30 January 2026 · source ↗
  26. ReportedSales rose 8% in the March quarter to $6.9 billion on higher sales of the entry-level iPad, then fell 6% in June to $6.2 billion on lower sales of the iPad mini and iPad Air, leaving the first nine months up 3% after a December quarter that grew 6% on the entry-level iPad and the iPad Pro; Apple called June a difficult comparison.
    MacRumors live coverage of Apple's Q3 FY2026 call (30 July 2026) — installed base above 2.5 billion; product margin 40.1% with a 2.5-point tariff-refund impact; September-quarter guidance: revenue growth of 9-11%, gross margin 47-48% with about 1% benefit from tariff refunds; Apple introduced a neural engine in 2017 — Q3 FY2026 call · publ. 30 July 2026 · source ↗
  27. ReportedIn June Apple also raised iPad prices because of the memory shortage, which lifts revenue per unit but tests demand for the entry model that drove the recent growth.
    CNN Business live coverage of Apple's 9 September 2026 event — CEO John Ternus, who took over from Tim Cook earlier in the month, revealed the foldable iPhone Duo, starting at $1,999 and topping out at $3,199; pre-orders from October 16, availability from October 23; iPhone 18 Pro from $1,199 and Pro Max from $1,299 against $1,099 and $1,199 for the iPhone 17 Pro models; older iPhones up $100 (iPhone 17 $899 from $799, 17e $699 from $599); a new leasing plan, Apple Upgrade — 9 September 2026 · publ. 9 September 2026 · source ↗
Sources
Generated September 19, 2026